Background and objectives
Public expenditure policy in Tanzania is largely guided by a participative process called the Public Expenditure Review (PER). This has been an ongoing process since fiscal year 1998/99 and includes stakeholders from: the Ministry of Finance; President's Offices for Planning and Privatisation, Public Service Management and Regional Administration and Local Government; sector Ministries; Tanzania Revenue Authority; Bank of Tanzania; research institutions; development partners; and civil society. The traditional PER function focused on the budget process in terms of management, control and accountability. The underlying objective was to evaluate budget performance against approved targets and procedures or processes and identify shortcomings and corrective measures. The overall objective of the current PER/Medium Term Expenditure Framework for a three year period is to improve budget management and the main focus is:-
Thus PER provides such inputs as updated sector MTEFs for key sectors, and donor commitments in support of the Government's expenditure strategy for incorporation in the government budget estimates – both for the forthcoming financial year as well as for the medium term.
- To improve predictive value of the budget
- To enhance budget sustainability
- To promote prioritization of expenditure objectives and allocative efficiency in line with the national Poverty Reduction Strategy
- To ensure increased shift of donor finance towards broader budget support which streamlines external support behind a Government led process;
- To strengthen an output oriented Budget that focuses on Service Delivery improvements.
The PER forum and meetings The PER forum meets regularly. A fortnightly meeting is held consisting of a core Working Group chaired by the Permanent Secretary of the Ministry of Finance. The Group provides overall direction to the PER work agenda including key expenditure policy issues such as the implications of fiscal decentralization on expenditure policy. A Macroeconomic Group chaired by the Permanent Secretary of the Ministry of Finance, discusses macroeconomic policies which have implications for public expenditure policy such as fiscal risks arising from shocks. In addition, Sector Working Groups comprising of representatives from sector ministries and development partners and civil society meet in order to discuss and prepare annual PER sector reports which provide key sector-specific policy issues and MTEF costings to be considered in the budget formulation process. An Annual PER Consultative Meeting is also held in order to discuss the key emerging issues from PER working groups during the fiscal year. This Meeting is an opportunity to reflect on public expenditure work carried out and the way forward on public expenditure policy. It is a high-level meeting and representatives from across Government, development partners and civil society attend to air their views in the spirit of open public debate.
Reports The Ministry of Finance formulates a Cross Sector Medium Term Expenditure Framework Paper each year. You can download them here (MS Word format).